Waye & Waye

The Federal Circuit and Family Court of Australia heard a case involving a property adjustment dispute between the husband and wife, both of whom had remarried. The central issue was the valuation of the husband's business, B Pty Ltd, and the determination of a just and equitable division of the parties' property. The wife sought a 15 to 20 per cent adjustment in her favour, arguing that the business shares should be valued based on the core enterprise value alone. In contrast, the husband argued that the surplus assets of the company should be included in the valuation, which would result in double counting. The court held that the surplus assets of the company, which were typically in the form of cash, were more appropriately characterised as a financial resource of the husband. It was decided that incorporating these surplus assets in the equity value of the company and treating them as a financial resource would result in double counting.

The court also considered whether the wife's new husband should be treated as a financial resource to her, despite a binding financial agreement. The court held that the wife's new husband should not be treated as a financial resource to her. After considering the relevant factors under s 75(2) of the Family Law Act 1975 (Cth), the court made an 18 per cent adjustment in favour of the wife. Ultimately, the court determined that a just and equitable division of the parties' property was 68 per cent in favour of the wife and 32 per cent in favour of the husband.

The final orders included the wife transferring her shares in the husband's company to the husband, the husband transferring to the wife the former matrimonial home unencumbered, and the sale of the property at E Street, Suburb D. The husband was ordered to pay the wife a cash sum to effect an adjustment of final property interests between them. Both parties were to indemnify each other from actions, claims, suits, and demands related to liabilities in the other's name, and they were to release each other from all debts owing from one to the other. Any application seeking an award of costs was to be filed and served with an affidavit in support within 28 days of the date of these orders.